HSBC’s revenues rose 3% y-o-y to USD 20.8 bn in 1Q 2024, defying the London Stock Exchange Group’s forecast of just USD 16.9 bn. The bank’s net income after tax logged USD 10.8 bn for the quarter, down 1.7% on the same period last year, according to the earnings report (pdf).

Driving the increase in revenues: The lender’s revenues were up due to the selling of its banking business in Canada to the Royal Bank of Canada in late March, which amounted to a gain of USD 4.8 bn. Revenues were also driven by “higher wealth revenue in Wealth and Personal Banking, notably from a strong performance in Global Private Banking, well as revenue growth in Equities and Securities Financing in Global Banking and Markets, as market sentiment improved.”

Dragging down the lender’s bottom line: The lender’s net income after tax was down due to a USD 2.1 bn adjustment in 1Q 2023 related to the sale of its French retail banking operations. This adjustment was reversed in 4Q 2023 before the sale was finalized. Additionally, net income before tax in 1Q 2023 included a USD 1.5 bn gain from acquiring Silicon Valley Bank UK, according to the bank’s financials.

On a quarterly basis: The lender’s net income after tax surged almost 48x q-o-q from USD 222mn, while revenues were up 59% from USD 13 bn in 4Q 2023.

NOEL QUINN IS LEAVING HSBC-

HSBC’s chief executive Noel Quinn is stepping down from his post after nearly five years, the bank said in a statement. “After an intense five years, it is now the right time for me to get a better balance between my personal and business life. I intend to pursue a portfolio career going forward,” said Quinn. The lender’s board has begun its search for Quinn’s successor and should settle on a replacement by 2H 2024.

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